How often can the bank change the rate on my credit card account?
For credit card accounts that have a variable Annual Percentage Rate (APR or rate), the rate will adjust periodically based on the disclosed account terms. For variable rate accounts, a change in rate based on the bank’s agreement with you does not require advance notice if the rate is tied to an index that is not under the bank’s control and that is available to the public.
If the bank wishes to increase the rate on an account that does not have a variable rate, the bank usually must provide you with 45 days advance notice and a right to reject the increase. Generally, you can reject the increase before the effective date of the change unless you are 60 days or more late in making a required minimum payment on your account. To prevent the change in rate on your existing balances and any transactions that occur up to 14 days after your receive the notice, you must reject the change before the effective date of the rate increase. The notice that the bank sends you will provide instructions for rejecting the change, and a toll-free number that you may use to notify the bank if you decide to reject the rate increase. The ability to reject the rate change may be especially important to you if you are carrying a balance. The bank also must let you know if the bank will terminate or suspend your ability to use the account if you reject an increase in the rate.
Be sure to review your Account Agreement, which is the contract governing your credit card account. It provides information on changes that may occur to your account.
You should also know that starting in February 2010, additional limits on changes in credit card rates will become effective. Please check this Web site to stay informed of important information about credit card accounts.
Revised 08/19/09
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